Republicans are now standing up against a proposal by Democrat President Joe Biden to give the IRS an additional $80 billion to recruit 87,000 new tax agents!
The plan is supposed to increase collections by targeting the richest earners, without affecting the audit rate for taxpayers with an annual income below USD 400,000, according to Politico.
The GOP, however, is alarmed by Biden’s proposal for several key reasons.
IRS was used as a weapon
Republican Sen. Chuck Grassley of Iowa has reminded that the IRS is notorious for abusing its power on prior occasions, and has thus suffered from a trust deficit.
Under Democrat President Barack Obama, the IRS “was weaponized” in order to crack down on conservative political entities, Grassley wrote in an Op-Ed in the Des Moines Register.
He further recalled how the revenue service squandered millions of taxpayers’ dollars on conferences and bonuses for its own employees who themselves didn’t even pay their own taxes.
Another IRS abuse he pointed out are expenditures worth millions of dollars on software which was never put into practices.
For those reasons, Grassley declared Americans were fully entitled to being concerned by plans to pour more piles of cash into the IRS without additional controls.
According to the Trump campaign’s chief Pollster, Tony Fabrizio, opinion samples show that Americans are reacting very negatively to a beefed-up IRS.
He said the main message of the Biden Administration was to raise taxes in order to spend an additional $80 billion on the recruitment of more tax collection.
Fabrizio noted how concerned the voters were with whether their taxes might grow against the backdrop of all the talk about greater IRS spending.
In his words, most voters hold are simply very suspicious and pessimistic.
An entire army of tax agents
Meanwhile, the Coalition to Protect American Workers (CPAW) has crafted a new political ad in order to demonstrate the consequences of Democrats’ plan to hire nearly 100,000 new IRS officials.
CPAW was founded by former Vice President Mike Pence’s former chief of staff, Marc Short.
The ad emphasizes that Biden’s proposed “staggering” IRS budget boost of $80 billion would lead to the recruitment of an entire army of new tax agents, according to Axios.
Short has declared that the goal of CPAW’s ad campaign is to encourage accountability by guaranteeing that voters would be aware of any member of Congress who might support the tremendous tax increases.
The ad stresses that Biden’s plan for increased tax collection boils down to favoring the progressive Democratic policies.
To put things in perspective, such a plan contrasts the defunding of the police with the fielding of tens of thousands of additional tax agents.
Short argued that the Democrat President’s tax proposal would likely affect many more than just the rich and corporations.
Something is wrong with Biden’s calculations
The main reason for that is that the corporate tax increase proposed by Biden would raise just USD 700 billion, whereas the total tax plan is about $3 trillion.
So, where would the rest come from?
Biden’s plan also obliges banks and crypto-trading platforms to report all transactions to the IRS, something that many people, on both sides of the political aisle are afraid of.
Senate Minority Leader Mitch McConnell has labeled the idea as a “snooping” of people’s bank records.
He states the IRS should be capable of carrying out its responsibilities without such grave intrusions on personal privacy and finances.
On top of everything else, the GOP is not even convinced that Biden’s aggressive tax collection would end up with a positive financial balance.
While there seem to be much to be gained from enhancing tax compliance, achieving that by boosting IRS funding has proven to be problematic or nontransparent, Sen. Mike Crapo (R-ID) stated in a recent letter addressing IRS Commissioner Charles Rettig.